Hich of the Following Elements Is Typically Found in Pension

question 21

Multiple Choice

hich of the following elements is typically found in pension fraud schemes?

• A) A corrupt union official approves the investment of union fund monies.
• B) Investment service providers are associated with organized crime.
• C) Service providers offer kickbacks from fees generated from servicing the plan.
• D) All of these are elements typically found in pension fraud schemes.

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Definitions:

Professional Fund Managers

Individuals or entities responsible for making investment decisions and managing investment portfolios on behalf of investors.

Outperform

To do better than others or than a benchmark, often used in the context of investment performance.

Frame Dependence

The influence of presentation or context on decision-making outcomes.

Loss Aversion

A cognitive bias where the pain of losing is psychologically about twice as powerful as the pleasure of gaining, impacting financial and investment decisions.